Albany NY Real Estate

Correctly analyzing a potential income property does not have to be hard. Proper analyis only requires some simply information that includes the purchase price, down payment amount, mortgage interest rate, mortgage term (most likely 30 years), estimated yearly rental income, and estimated operating expenses (insurances, taxes, water/sewer,etc) Once you have this info your returns can be calculated fairly easily. I have a property investment analyzer that will figure your Gross rent multiplier, cap rate, etc but all you really need to know is what you cash on cash return is. If you need help analyzing an investment let me know I would be happy to help you out. Here is a link to the analyzer that works well to give you a quick overview of a property.

Click here for a quick and easy Albany NY Real Estate Investment Analyzer

I love Albany NY Student housing. While it can be tough on  properties renting to college students can be a very profitable side of the rental property business. However, as a student rental landlord you need to have a general knowledge of Albany codes. One in particular is the Grouper law that does not allow more then three unrelated people to live in the same unit. If the residents are members of a traditional family then more then three people can occupy a unit.  Here is the  section of the code that applies.

 Section 375-7 of the zoning ordinance

FAMILY Shall mean

1. 1. one, two, or three persons occupying a dwelling unit or
   2. four or more persons occupying a dwelling unit and living as a traditional family or the functional equivalent of a traditional family
2. It shall be presumptive evidence that four or more unrelated persons living in a single dwelling unit do not constitute the functional equivalent of a traditional "family"

The bottom line if you have a 4-5 bedroom unit and plan on renting to unrelated parties you will be limited to renting to only three people. Be sure to figure this into your income calculations when you run your numbers.  Sure I see landlords routinely violate this law. However, keep in mind if there is ever a fire or other major problem, as a landlord you may have a potentially huge liability. In  addition, If  you have a problem with your tenants not paying rent  and end up in court it doesn't look good for your case if this comes to light. If you want to run Albany rentals obtain Residential Occupancy Permits, Abide by the codes and laws, and you will have a more successful, profitable, and stressfree business.  Albany NY Rentals

There appears to be a huge misunderstanding among local real estate agents and market participants regarding residential occupancy permits (often referred to as CO's or certificates of occupancy) in the City of Albany. It is not uncommon for me to ask a listing agent if the property has ROP's only to be asked what an ROP is.  Rental property in the city of Albany is required to have an ROP that is issued every 30 months after an inspection by the fire department. The fire department will inspect the building to make sure it complies with safety and code rules and is rentable.  Typical inspection items include an operable door bell, self closing doors, smoke detectors, peep holes, etc.  Typical items that any prudent rental owner would want in a property anyway. If you are buying Albany Rental property, having a seller provide the current ROP's, is a general requirement an agent familiar with the market will write into a contract. In some cases, properties are sold "as is" and the buyer is responsible for obtaining ROP's.  For Clarification here is the section of the code that requires Residential occupancy permits for Albany Rental property.  For additional information visit me at Albany NY Rental Property

 Amended 8-19-1996 by Ord. No. 23.102.95] A. 

General.

(1) 

All residential rental dwelling units shall be inspected and certified by the Department of Fire and Emergency Services (hereinafter "the Department"), which shall determine compliance with, administer and enforce all applicable provisions of this code and the Code. On and after November 1, 1996, residential occupancy permits shall be valid for 30 months from the date of issuance. [Amended 4-16-2001 by Ord. No. 4.11.01]

 (2) 

Nothing contained herein shall be construed or operate to invalidate an otherwise legally effective permit or certificate issued prior to November 1, 1996, except that such permit or certificate shall be valid only until May 31, 1999, or a change in the tenancy of the residential rental dwelling unit to which the permit or certificate relates, whichever first occurs.

(3) 

Except as otherwise provided herein, it shall be unlawful and a violation of this chapter to rent, lease or otherwise allow the occupancy of any residential rental dwelling unit without the inspection and certification as required herein.

(4) 

If, upon inspection, said premises do not comply with all applicable provisions of this code or the Uniform Code, the specific reasons for noncompliance shall be specified in writing in a notice and order, as provided in § 231-108. The notice and order shall be served as set forth in Chapter 133A of this Code. Occupants or proposed occupants of dwellings shall have the right to inspect the certificate of occupancy of the residential rental dwelling unit, apartment or multiple residence in which they have an interest at no cost.

B. 

On or after November 1, 1996, the Department shall have the right to inspect all or any part of the rental dwelling, including any unit or apartment, or entire multiple residence as required herein and/or upon complaint, except that the owner, agent or person in charge thereof shall have the right to insist upon the procurement of a search warrant from a court of competent jurisdiction by the Chief of the Department, or his or her designee, in order to enable such inspection. The officials charged with conducting the inspection pursuant to this Part 4 shall be required to obtain a search warrant whenever an owner, agent or person in charge refuses to permit a warrantless inspection of the premises after having been advised that he or she has a constitutional right to refuse entry of the officials without a search warrant.

C. 

The officials charged with conducting the inspection shall make such inspection, access and circumstances permitting, within three business days of receipt of a request from the owner, agent or occupant.

D. 

An owner, agent or occupant may file with the Department a request for such inspection and the issuance of a residential occupancy permit by regular mail or in person at the office of the Chief of the Department.

E. 

Nothing in this Part 4 shall be construed to limit the right of the Department to inspect any property at any time. If, after issuing a residential occupancy permit, the Department receives a complaint alleging a violation of this chapter, other than a violation that creates an imminent hazard to the public health or to the physical or mental health of the occupants of the rental property, the Department shall make a good faith effort to notify the owner or agent of the complaint by either telephone or regular mail, before conducting an inspection under this chapter, and shall provide to the owner or agent one working day to explain what steps the owner or agent is taking to correct the violation. The Department may take steps necessary, by inspection or other means, to assure that the violation is corrected. [Amended 4-16-2001 by Ord. No. 4.11.01]

 F. 

No residential occupancy permit shall be issued under this Part 4 unless and until the fee(s) required under Part 5 of this chapter is paid in full to the Department.

On 3/26/09 I had the pleasure of being a guest along with Steven Mcintyre, owner of Vista Home Funding, on "Real Conversations" a local TV show dedicated to local issues. Lisa Giruzzi owner of Transformational Conversations and her co-host Susan Beaudoin made the taping fun, informative, and interesting. Hopefully, the glare off my forehead didn't ruin the shoot! If you want to hear my take along with mortgage expert Steve Mcintyre's opinion of the local real estate and mortgage markets be sure to tune in. If you don't know Lisa Giruzzi be sure to visit her site for any of your business consulting or coaching needs. Lisa has been a friend, mentor, and coach of mine for a while now and I can't speak more highly of the work she does. I am not sure when the show will air but will post the info when I have it. Thanks again Lisa for a fun day! 

I do a considerable amount of business with investment properties in the Albany area. Investment properties take more time and effort in my opinion for many reasons.  This is due in part to the many, additional zoning, rental, code, and financial aspects of the business an agent must learn.  It is also because of simple things like dealing with tenants that don't want a new landlord. Showings are generally a hassle as most tenants do not like to be bothered with showings and often don't return calls. However, its part of the business. 

Recently ,I had a conversation with one of many California investors I am currently working with. This investor also happened to be an agent in California.  In her area of the state, buyers are not allowed into a property for a showing until an acceptable contract to purchase the home has been accepted.  The homes are purchased based on the financials  and a drive by and are contingent upon a satisfactory inspection by the buyer.

When I first heard this it sounded crazy but as a thought about it, it is probably the way we should do business in Albany, NY. Doing so would force listing agents to provide accurate income and expense data for all listings. Currently it seems like financials are  an after thought for many listings agents. If homes were purchased strictly on financials it would make listings agents price them correctly and make all learn what returns are necessary for homes to sell. I don't know how many overpriced homes I have shown that I couldn't tell were overpriced from the listings because they  didn't have complete financials. By using financials only and shopping properties based on income and expenses many hours of wasted showings and tenant inconveniences could be avoided.

In my opinion, this is at least one area where Albany should be more like California. Buyers, take the time to get complete financials and run your numbers prior to even looking at a property. If you need help analyzing financials or need to know what type of ROI's you can expect in Albany call or email me anytime.

If you have any questions please do not hesitate to contact me. Thank You!

Sincerely,

Kevin Clancy

518-861-7016
kevin@clancyrealestate.com
http://www.clancyrealestate.com

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It is not often I get excited about upgrades to my website. However, I am excited about this update. After getting a continuous stream of calls and emails over the past six months about the market I have added a feature that gives users an up to the minute "market SnapShot" This system uses local Multiple Listing Service data not dated tax data like many sites use. If you want info on sale price to list price, number of listings in a neighborhood, recent sold prices, school reports, etc then this site is for you. You can access market snapshot directly from the main page of my website at Albany NY Real Estate For Sale or by clicking on the link below. Give it a shot. I think you will love the data. Don't be an uninformed consumer!